Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
24 Jan 2010, 18:13
Kudos
Bookmarks
Hi,
Could anybody explain in a bit detail how to solve the following question:
Q: A company's monthly profit margin is equal to the difference between sales revenue and production costs in a given month. If sales revenue rose by 10 percent since January while production costs rose by 5 percent, what was the percentage increase in the profit margin?
1. Sales revenue was $2,000,000 in January
2. Profit margin was $100,000 in January
-Thanks in anticipation.
-Amit
Could anybody explain in a bit detail how to solve the following question:
Q: A company's monthly profit margin is equal to the difference between sales revenue and production costs in a given month. If sales revenue rose by 10 percent since January while production costs rose by 5 percent, what was the percentage increase in the profit margin?
1. Sales revenue was $2,000,000 in January
2. Profit margin was $100,000 in January
-Thanks in anticipation.
-Amit
Archived Topic
Hi there,
Archived GMAT Club Tests question - no more replies possible.
Where to now? Try our up-to-date Free Adaptive GMAT Club Tests
for the latest questions.
Still interested? Check out the "Best Topics" block below for better discussion and related questions.
Thank you for understanding, and happy exploring!
25 Jan 2010, 02:11
Kudos
Bookmarks
Hi Amit,
UR probably clear that our aim is to calculate the percentage increase in the profit margin
For this we will first have to fine the value of Profit Margin(PM) for the month of January and Feb. We know the PM for the month of Jan but in order to calculate the PM for the month of Feb we will have to fine the SR of Feb and PC of Feb.
We can find the SR of Feb as the below
SR in Jan was 2,000,000
SR is Feb increased by 10% on that of Jan i.e. the increased amount (10/100)*2,000,000=200,000
So the total SR in Feb = SR in Jan + Incresed amount = 2,000,000 + 200,000 = 2,200,000
Profit Margin(PM) for Jan = Sales Revenur(SR) for Jan - Production Cost(PC) for Jan
i.e. 100,000 = 2,000,000 - PC
Therefore PC for Jan = 2,000,000 - 100,000 = 1,900,000
Now its given that PC rose by 5%.
Therfore PC for Feb = (5/100)*1,900,000 + 1,900,000 = 1965000
PM for Feb = SR for Feb - PC for Feb = 2,200,000 - 1965000 = 235000
% Change in PM = ((Difference in PM of 2 months)/PM of Jan)*100 = 135%
Can you pls confirm the Ans Amit
UR probably clear that our aim is to calculate the percentage increase in the profit margin
For this we will first have to fine the value of Profit Margin(PM) for the month of January and Feb. We know the PM for the month of Jan but in order to calculate the PM for the month of Feb we will have to fine the SR of Feb and PC of Feb.
We can find the SR of Feb as the below
SR in Jan was 2,000,000
SR is Feb increased by 10% on that of Jan i.e. the increased amount (10/100)*2,000,000=200,000
So the total SR in Feb = SR in Jan + Incresed amount = 2,000,000 + 200,000 = 2,200,000
Profit Margin(PM) for Jan = Sales Revenur(SR) for Jan - Production Cost(PC) for Jan
i.e. 100,000 = 2,000,000 - PC
Therefore PC for Jan = 2,000,000 - 100,000 = 1,900,000
Now its given that PC rose by 5%.
Therfore PC for Feb = (5/100)*1,900,000 + 1,900,000 = 1965000
PM for Feb = SR for Feb - PC for Feb = 2,200,000 - 1965000 = 235000
% Change in PM = ((Difference in PM of 2 months)/PM of Jan)*100 = 135%
Can you pls confirm the Ans Amit
gurpreetsingh
Joined: 12 Oct 2009
Last visit: 15 Jun 2019
Posts: 2,272
Own Kudos:
Given Kudos: 235
Status:<strong>Nothing comes easy: neither do I want.</strong>
Location: Malaysia
Concentration: Technology, Entrepreneurship
Schools: ISB '15 (M)
GMAT 1: 670 Q49 V31
GMAT 2: 710 Q50 V35
Products:
25 Jan 2010, 02:49
Kudos
Bookmarks
Profit (P)= Sale(S) - Cost(C)
New Profit (P') = 110S/100 - 105C/100
= 5S/100 + 105S/100 - 105C/100 = 5S/100 + 105/100 (S-C)
= 5S/100 + 105P/100
Now statement 1 gives S
statement 2 gives P
Thus both together are sufficient. Thus C
If this is PS ques....solve it.
Please always specify the type of ques whether its PS or DS
OA pls
New Profit (P') = 110S/100 - 105C/100
= 5S/100 + 105S/100 - 105C/100 = 5S/100 + 105/100 (S-C)
= 5S/100 + 105P/100
Now statement 1 gives S
statement 2 gives P
Thus both together are sufficient. Thus C
If this is PS ques....solve it.
Please always specify the type of ques whether its PS or DS
OA pls
